HC Deb 11 March 1992 vol 205 cc556-7W
Mr. Austin Mitchell

To ask the Secretary of State for Trade and Industry (1) pursuant to his answer of 22 November,Official Report, column 346, what information he has on the duration of a visit by the Chartered Association of Certified Accountants and the number of files which its compliance officers will examine during each visit;

(2) pursuant to his answer of 22 November, Official Report, column 346, what information he has about the number of client files which the supervisory bodies will examine during each visit.

Mr. Redwood

I understand that, including time spent on preparation, discussion of the findings with the firm, review, and reporting conclusions and recommendations, the length of time spent on monitoring visits by the Chartered Association of Certified Accountants, in its capacity as a recognised supervisory body, will typically range from one and a half to four days.

The association will monitor members of the Association of Authorised Public Accountants on the same basis under the terms of arrangement between those bodies.

The number of files to be examined will vary according to the circumstances but will be sufficient for the compliance officer to determine whether the required standard of audit work has been attained.

The joint monitoring unit of the three Institutes of Chartered Accountants will normally examine not less than three client files on each visit although in many cases the number of files to be examined will be considerably greater.

Mr. Austin Mitchell

To ask the Secretary of State for Trade and Industry if he will make a statement on the cost of the Ernst and Young staff seconded to his Department, the functions they are performing, and their supervision by his Department.

Mr. Redwood

The Department has one member of staff on secondment from Ernst and Young at an annual cost, including salary, national insurance and superannuation which is linked to the civil service grade 7 salary scale.

The secondee's main functions, performed under the direct supervision of a civil servant, are the authorisation of new insurance companies and the provision of expert advice on the supervision of insurance companies.